MICHAEL GRAHAM

lyde’s who are designated as hourly employees and Kaplan, Inc. who are designated as part-time employees and certain collectively bargained union employees are eligible to receive Company Matching Contributions (generally 1 % of base salary) if they are not eligible to participate in The Retirement Plan for Graham Holdings Company; • Add Roth and Roth catch-up employee contributions as an option to the Plan, and allow rollover contributions to the Plan in the form of Roth contributions; • Allow participants to elect an In-Plan Roth conversion with respect to all or a portion of the vested amounts in the participant’s accounts other than a Roth Contribution Account or a Roth Rollover Account; • Permit participants to take out one active loan from the Plan at a time; • Additionally, the Plan

received, there may be additional participant loans transferred to the Plan and administered in accordance with their terms. Vesting Upon enrollment in the Plan, participants are fully vested at all times in all amounts held in their accounts. Transfers (to) from other GHC plans From time to time, participant accounts are reviewed and transferred into the Company plan that the participant is currently participating in. Additionally, transfers may also occur between the Plan and other GHC plans that relate to new organizational positions, rehired employees by one of the employers with an existing balance in another GHC plan, or transferred employees to one of the employers with an existing balance in another GHC plan. Plan Expenses Certain costs of administering the Plan are generally paid

250,187 Total contributions 4,175,777 Interest income - notes receivable 73,130 Total additions 16,740,535 Deductions from net assets: Benefits paid to participants ( 7,110,123 ) Administrative expenses ( 128,294 ) Total deductions ( 7,238,417 ) Net increase 9,502,118 Transfers (to) from affiliated plans Transfers from Kaplan Tax Deferred Savings Plan 1,813,308 Transfers to Kaplan Tax Deferred Savings Plan ( 1,187,240 ) Transfers to Savings Plan for Graham Holdings Company ( 19,279 ) Net transfers from other affiliated plans 606,789 Net assets available for benefits Beginning of year 76,612,299 End of year $ 86,721,206 See the accompanying notes to the financial statements. 3 THE 401(k) SAVINGS PLAN FOR GHC AFFILIATES NOTES TO FINANCIAL STATEMENTS NOTE 1 – DESCRIPTION OF PLAN The followin